FCC Imposes $9,997,750 Fine on California Telemarketer Who Spoofed a Competitor's Number

The bottom line: putting another company's number in your caller ID to harm that company is unlawful spoofing, and it can cost millions.

What happened

According to the FCC, the calls took place on May 30 and 31, 2018, about one week before the primary. The prerecorded calls contained false accusations against a candidate for the California State Assembly. The FCC says the allegations had already been investigated and disproven by the San Diego County Sheriff's Department.

Moser set the caller ID on all 47,610 calls to display one number belonging to HomeyTel, a different telemarketing company that the FCC describes as his long-time business rival. HomeyTel advertises legal robocalling services to political candidates. Because of the calls, HomeyTel received many angry complaints from consumers and a cease-and-desist letter from the candidate.

The California Secretary of State referred a complaint to the FCC's Enforcement Bureau, which investigated.

The FCC's findings

The FCC released a Notice of Apparent Liability on December 13, 2019, proposing the $9,997,750 penalty. In the Forfeiture Order, adopted November 18, 2020 and released November 19, 2020, the FCC considered Moser's arguments, found none persuasive, and affirmed the full amount. Read the FCC Forfeiture Order against Kenneth Moser.

The order also states that more than 11,000 of the calls went to wireless phones without the called parties' consent, and that none of the 47,610 prerecorded messages included the telephone number of the party responsible for the call or any other identifying information.

The law

The Truth in Caller ID Act prohibits manipulating caller ID information with the intent to defraud, cause harm or wrongfully obtain anything of value. The FCC found Moser spoofed his calls to appear to come from HomeyTel "with the intent to cause harm to HomeyTel and others."

Where the matter stands

The Forfeiture Order is the FCC's final action on the proposed penalty. Commissioner O'Rielly approved in part and dissented in part.

Why it matters

The case shows that the harm the law addresses is not limited to the person who receives the call. A business whose number is used can be the target. It also shows that political robocalls receive no special protection from spoofing rules.

What this means for you

1. Never display a number you do not have the right to use.
2. Confirm that every prerecorded message identifies the caller as the law requires.
3. Treat political calling with the same care as commercial calling.